Scott Keogh, Chief Executive of Volkswagen Group of America has shared his concerns over the production of electric vehicle batteries. He has noted that it may be impossible to meet Joe Biden’s expectations of a 50% increase in electric vehicle car sales by 2030. This expectation is concerning as there is a lack of manufacturing factories and plants in the U.S.
Keogh believes a huge change is needed for the U.S to be ready as an electric vehicle manufacturing power. A large industrial transformation is necessary to meet the electrical vehicle demands, while also cutting costs and bringing production back to the lands of America.
“It comes down to labor, it comes down to the infrastructure, it comes down to the investment,” Keogh told Reuters on the sidelines of a recent Automotive News forum.
Shipping costs for car’s and their parts are affecting many electric vehicle producers. Bringing manufacturing to the U.S can offset costs, however, there does not seem to be enough workers interested in factory work. At the moment, about 200,000 electric vehicle batteries are produced yearly, but in seven years experts estimate the industry will need over 8.5 million batteries. In just 20 years, the U.S lost about five million jobs in the manufacturing sector, many being factory jobs.
Did you enjoy this article? Read other articles on CBT News here. Please share your thoughts, comments, or questions regarding this topic by submitting a letter to the editor here, or connect with us at newsroom@cbtnews.com.
Be sure to follow us on Facebook and Twitter to stay up to date or catch up on all of our podcasts on demand.
While you’re here, don’t forget to subscribe to our email newsletter for all the latest auto industry news from CBT News.
